Abstract
The recent financial failure of several multi-billion dollar publicly traded companies has dramatically increased financial statement users concerns about the quality of financial reporting. In response, President Bush recently signed the Sarbanes-Oxley Act, which significantly increases regulatory oversight of the financial reporting and auditing processes. A section of the Act creates an inspection process for firms that provide audits to publicly traded companies. This research provides an examination of the timing of the current peer review and recently enacted inspection processes. The stated goal of these review processes is to increase the value of accounting services by improving quality. Utilizing the laboratory markets methodology, this paper examines the influence of a peer review type process on the provision of audit quality, specifically examining the periodicity of review process. The results indicate a timely review process increases audit quality.
| Original language | English |
|---|---|
| Pages (from-to) | 209-225 |
| Number of pages | 17 |
| Journal | Research in Accounting Regulation |
| Volume | 16 |
| Issue number | C |
| DOIs | |
| State | Published - 2003 |
Bibliographical note
Funding Information:I am grateful for helpful comments from my dissertation committee, W. Robert Knechel (Chairperson), Karl Hackenbrack, John Lynch, and David E. R. Sappington for their comments and guidance. Additional helpful suggestions were provided by Mark Anderson, Andy Cuccia, Brian Mayhew, and two anonymous reviewers. I would also like to thank the workshop participants at the University of Alabama, University of Florida, Georgetown University, University of Illinois, Indiana University, University of Northern Iowa, and the University of South Carolina for comments on an earlier version of this paper. I gratefully acknowledge the financial support provided for this research by the Deloitte & Touche Foundation.
Funding
I am grateful for helpful comments from my dissertation committee, W. Robert Knechel (Chairperson), Karl Hackenbrack, John Lynch, and David E. R. Sappington for their comments and guidance. Additional helpful suggestions were provided by Mark Anderson, Andy Cuccia, Brian Mayhew, and two anonymous reviewers. I would also like to thank the workshop participants at the University of Alabama, University of Florida, Georgetown University, University of Illinois, Indiana University, University of Northern Iowa, and the University of South Carolina for comments on an earlier version of this paper. I gratefully acknowledge the financial support provided for this research by the Deloitte & Touche Foundation.
| Funders | Funder number |
|---|---|
| Deloitte & Touche Foundation |
ASJC Scopus subject areas
- Accounting
- Finance
- Sociology and Political Science